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Indigo Ltd. Has the following quantity discount policy with its supplier Evanora Inc. QuantityPrice per Case 1-299 cases $26.00 300-749 cases $24.86 750-1,499 cases $23.69
Indigo Ltd. Has the following quantity discount policy with its supplier Evanora Inc.
QuantityPrice per Case
1-299 cases $26.00
300-749 cases $24.86
750-1,499 cases $23.69
1,500 + cases $22.45
The economic order quantity is 161 cases and the annual usage is 25,921 cases. The ordering cost (K) is $6 per order and the carrying cost of inventory (H) is $12 per unit. Determine the most cost-effective order quantity.(Round answers to 2 decimal places, e.g. 125.74.)
Most cost effective order quantity?
Total Cost? ($)
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